Kuwait Bank to adopt Cross-Border Payments via Ripple

The Kuwait Finance House (KFH) has been turned into the Arab nation’s first bank to join RippleNet, a blockchain network for international remittance payments
30 May 2018   980

The Kuwaiti bank declared its intension to join RippleNet, a SWIFT-replacement blockchain network that sees over 100 financial institutions including banks, payment providers, remittance operators and other financial establishments use the product for real-time clearing and settlement of international transactions.

KFH stated that with this move, KFH can supply instant and secure cross-border money transfers within few seconds, with end-to-end visibility over the journey of the payment. Details of the suggestion are presently scarce and it stays to be seen if the bank uses Ripple’s xCurrent, an enterprise blockchain software that allows settlements in fiat or xRapid, a product which uses Ripple’s token XRP for real-time liquidity for international proceedings.

As the bank claims it will demand the approval of the Central Bank of Kuwait (CBK) prior to the run of the Ripple service, KFH convinces that the clients will gain profits  from faster payments in increased efficiency, security and transparency of the transaction at markedly lower costs than traditional solutions.

The defacto central bank of Saudi Arabia, the Saudi Arabian Monetary Authority (SAMA), has also cooperated with Ripple to pilot Ripple’s xCurrent among a number of regional banks. The SAMA is also the first central bank in the world to join RippleNet.

RippleNet Now Has Over 200 Participants

According to Brad Garlinghouse, during 2018, RippleNet was replenished with 100 financial institutions
09 January 2019   305

RippleNet was joined by 13 more financial institutions. Now network has more than 200 participants.

New partners of RippleNet are Euro Exim Bank, SendFriend, JNFX, FTCS, Ahli Bank of Kuwait, Transpaygo, BFC Bahrain, ConnectPay, GMT, WorldCom Finance, Olympia Trust Company, Pontual / USEND and Rendimento.

JNFX, SendFriend, Transpaygo, FTCS and Euro Exim Bank involve the XRP token in their operations. Ripple is confident that this digital asset is great for cross-border payments, as it increases their speed and reduces costs.

According to Ripple CEO Brad Garlinghaus, during 2018, RippleNet was replenished with 100 financial institutions.